The report indicated that the critical defect rate for mortgages slightly increased to 1.58% in Q1 2024, ending a five-quarter decline, suggesting modest overall stability in mortgage quality.
Income and employment data continue to dominate as the primary category for defects in mortgage origination, despite a significant quarterly improvement in performance, which indicates proactive measures are being taken.
Legal, regulatory, and compliance defects experienced a dramatic rise, more than doubling to 16.22% and emerging as the second-largest category of defects in Q1 2024, reflecting growing scrutiny in these areas.
The report noted that while the refinance review share has decreased, the defect share for refinances doubled, indicating worsening quality, particularly in that segment of the mortgage market.
#mortgage-quality-control #defect-rates #regulatory-compliance #financial-analysis #housing-market-trends
Collection
[
|
...
]